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Panama: Reinforcing the power generation capacity and diversifying the country’s energy mix
Project
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Signature date
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Location
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Panama
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Financing tool
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Financing amount (Euro)
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20497281
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Financing details
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Loan of USD 23m
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Customer
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BANCO ALIADO SA
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Type of customer
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Financial institution
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Country of headquarters
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Panama
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Project number
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PPA1009
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Environmental and social ranking
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IF-A
Proparco’s loan to Banco Aliado will finance renewable energy projects in Panama. Their development will increase the power generation capacity, in a context of growing demand, and the diversification of the country’s energy mix, which is still largely dependent on fossil fuels.
Client presentation
Banco Aliado obtained a universal banking license from the National Banking Commission in 1992. This license allows Banco Aliado to conduct banking operations both in Panama and abroad. Banco Aliado is 100%-owned by six Panamanian shareholders. It ranks 15th among banks with a general license (December 2016).
Project description
The credit line allocated by PROPARCO will be earmarked to finance renewable energy projects in Panama. It will allow Banco Aliado to develop its lending activity in the sector and meet increasing needs for long-term financing.
Project impact
This operation will contribute to increasing Panama’s power generation capacity, in a context of increasing demand. It will contribute to diversifying the energy mix in a country which is still largely dependent on fossil fuels. It will thereby have a positive impact on the climate by contributing to reducing greenhouse gas emissions in the country. More generally, it will encourage the banking sector to support green investments.